May 17, 2016
| Subscribers Only

This study, conducted by IHS and commissioned by Facebook Audience Network, provides the first market sizing and future projections of the in-app native advertising market across regions. While first party in-app native, like those seen on Facebook, will continue to be the largest revenue driver, third party in-app native will continue to grow, at an annual average rate of 70.7% and will account for 10.6% of all mobile display advertising at $8.9bn by 2020. However, the paths to adoption of native advertising vary for different types of mobile publishers. A flexible approach which puts the user experience at the heart of the advertising strategy is crucial for the success of native.

Highlights:

Key Findings

By 2020, 75.9% of all digital advertising revenue will be mobile at $83.8bn

By 2020, 63.2% of mobile display advertising will be native, which will make up $53.4bn in advertising revenue

Third party in-app native advertising is growing quickly. It is forecast to increase at a 70.7% compound annual growth rate between 2015 and 2020, amount to $8.9bn and account for 10.6% of mobile display advertising.

North America is the leading region in third party in-app native advertising both in absolute and relative terms; APAC will record the largest increase in the next five years at a 177.0% compound annual growth rate between 2015 and 2020.

Utilities, news and social apps are the champions of in-app native advertising, while games are more hesitant to adopt new ad formats.